In 2013, the National Planning Commission of Nepal introduced the Compact
Rural Settlements Policy (CRSP) with the objective of improving the quality of life of
people in rural Nepal. It was not the first time that the Nepali government had introduced
a policy that highlighted the need to address rural poverty and required substantial
government involvement. In a country such as Nepal with weak government and
ineffective bureaucracy, expanding the services of the government structures without
necessarily strengthening the public institutions first brings its own set of issues.
This thesis argues that the policy of compact settlements is conducive to
improving the quality of life of people in Nepal. In order to demonstrate the argument, it
first analyzes the one of the major arguments in the CRSP, i.e. if the access to services
plays a crucial role in migration in rural Nepal. I found that the relationship between
access to services and migration is not significant when controlled for factors such as
socio-economic status, age, and sex. This finding goes against the claim in the CRS
policy that people in rural Nepal migrate mostly in search of access to facilities.
I also explore if the CRSP aligns with other major policy frameworks in Nepal. In
general, the CRSP aligns with policies related to land-use, tourism, agriculture and
environment. However, just because CRSP with other policies does not mean it is
suitable in the context of Nepal. As the policy has not yet been implemented, I looked at
the implementation of clustered settlements policy in Tanzania to draw policy lessons.
The policy of ujamaa villagization was a disaster in Tanzania, with severe social and
economic consequences.
Just because the policy failed in Tanzania does not mean it is not suitable in the
context of Nepal. Therefore I also analyze the contexts in which the ujamaa policy was
implemented. My finding is that the context of policymaking in Nepal resembles that in
the Tanzania when the policy of ujamaa villages were implemented.
More precisely, the long history of elite policy making with the primary intention
to serve the power center in Kathmandu along with the prevalence of patronage politics
dominate the context in which the CRSP is formulated. Rural development in Nepal has
been largely limited to rhetoric without substantial gains for the public. Thus, this thesis
argues that it is not in the interest of Nepali public at large to implement the CRSP.
Instead focusing on effective public service delivery and improving public participation
in the public policy making might be more impactful in helping address rural poverty in
the long run.